Business News Asia
The Australian Bureau of Statistics (ABS) reported that consumer spending surged in November 2022 as Black Friday and online sales celebrations boosted sales of clothing, electronics and furniture.
This suggests that the recovery in consumption will be a catalyst for the Reserve Bank of Australia to further raise interest rates to curb inflation. According to ABS, retail sales rose 1.4% in November from October to a record A$35.9 billion ($24.74 billion), beating analysts’ expectations of only a 0.6% increase.
The consumer price index (CPI) rose by 7.4% year-on-year in November. This was above the 6.9% increase in October and above analysts’ expectations.
The report sent the Australian dollar up 0.3% to 69.07 U.S. cents and sent the yield on 3-year Australian government bonds soaring. The Reserve Bank of Australia once said that future rate hikes will depend on inflation and employment data. The Reserve Bank of Australia will meet on Feb. 7, the first monetary policy meeting of 2023.